Know the Procedure of Formation of a One Person Company (OPC) in India

Posted by Ananya Nair on December 10th, 2019

One Person Company is another idea in India which has been presented by the organization's demonstration 2013. Over 1,400 one-individual organizations, a greater part of them occupied with business administrations, have been set up in only nine months beginning April 2014 when guidelines permitting such substances came into power. Most recent information arranged by the Corporate Affairs Ministry shows that up to December 31, 2014, a sum of 1,403 OPC were enlisted with it and their aggregate approved capital remained at Rs 31.31 crore.

The idea opens up stupendous potential outcomes for sole owners and business person who can take the benefits of Limited obligation and corporatization yet were kept down in doing so given the prerequisites of finding a subsequent executive or second investor.

Concepts Behind One Person Company

One shareholder:

This is the major idea of a One Person Company Registration. Truth be told, One Person Company is characterized in the Companies Act as a Company which has just a single part. A solitary investor holds 100 percent shareholding.

2. One Person Director

The other significant point is that a One Person Company may have just a single executive. And yet there is no bar on increasingly number of chiefs. Nonetheless, according to the Act, the all-out number of chiefs will not be more than 15.

3. Nominee for OPC

This is a significant idea where the individual shaping the One Person Company needs to choose a Nominee with his composed assent who, in case of death or powerlessness to agreement of the proprietor of the One Person Company, will approach and assume control over the reins of the one individual organization.

4. Taxation of OPC

Since nothing has been determined all things considered by the money service, it is expected that the paces of tax assessment pertinent for a private constrained organization will apply to a One Person Company. Duty @30% alongside different cases is to be paid.

5. Freedom from Compliance

One Person Company likewise gets opportunity from agreeing to numerous prerequisites as regularly pertinent to other private constrained Companies. Certain areas like Section 96, 98 and segments 100 to 111 are not appropriate for a One Person Company. A portion of these are referenced underneath:

OPC Terms and Restrictions

1. An individual will not be qualified to fuse in excess of a One Person Company or become chosen one in more than one such organization.
2. Minor can't become part or candidate of the One Person Company or can hold share with valuable intrigue.
3. An OPC can't be joined or changed over into an organization under Section 8 of the Act. [Company not for Profit].
4. Can't complete Non-Banking Financial Investment exercises remembering venture for protections of anyone corporate.
5. An OPC can't change over deliberately into any sort of organization except if two years have terminated from the date of consolidation of One Person Company, aside from edge limit (settled up share capital) is expanded past Rs.50 Lakhs or its normal yearly turnover during the pertinent period surpasses Rs.2 Crores i.e., if the Paid-up capital of the Company crosses Rs.50 Lakhs or the normal yearly turnover during the applicable period surpasses Rs.2 Crores, at that point the OPC needs to constantly document structures with the ROC for transformation in to a Private or Public Company, with in a time of Six Months on rupturing the above edge limits.